In last trading session, the stock price of Allianz SE (ADR)(OTCMKTS:AZSEY) declined more than 2% to close the day at $13.68. The decline came at a share volume of 3.84 million compared to average share volume of 554,995.
Last month reported that Allianz reported that it had completed a binding deal for acquiring Zurich Assurances Maroc, which is a subsidiary unit of Zurich Insurance Company. This deal is a major achievement for the company in Africa. Zurich Assurances comes in the list of the largest insurance firms in Morocco, and currently stands at number seven in the casualty and property market. It is serving over 600,000 clients. Last year, gross premiums written came at 14 million euros. Also, Zurich Assurances owns a license for health and life insurance offerings, which Allianz intends to utilize.
Allianz views African market as one of the vital future growth markets. Currently Allianz operates in 15 nations in Africa. The deal in Morocco, which is the second-largest insurance market in Africa, marks a significant step for company to be well placed to capture opportunities in the African region. Sergio Balbinot of Allianz said that this transaction is a momentous milestone for company’s strategy to extend its footprint in Africa.
Morocco showcase good growth opportunities for both commercial and personal lines. They can support Moroccan as well as international clients in their international and local business. Additionally, Allianz is stated as an ‘employer of choice’ in African market. The management said that they look forward to advancing and promoting local talents in booming market.
Allianz reported its first quarter results in May wherein it stated that total revenues in reported quarter declined 6.4% to 35.4 billion euros while the operating profit declined by 3.5% to 2.8 billion euros. It shows a strong start to the fiscal with operating profit outlook for FY2016 reported at 10.5 billion euros.